The Supreme Court Committee on Road Safety has asked the insurance regulator IRDAI to require that insurers offer compulsory three-year insurance policies for cars and five-year policies for motorbikes at the time of sale and registration.
The proposal was made out of concern over poor compliance with regulations related to mandatory motor third party insurance, that puts all road users at financial risk.
Sources in the Insurance Information Bureau said that only around 65-70 million vehicles had insurance cover against approximately 180 million registered vehicles, reports Times of India. A large proportion of uninsured vehicles are two-wheelers.
Currently, insurers offer three-year insurance plans for two-wheelers.